Qualcomm Unveils AI Data Center Chips, Sees $40 B Non-Handset Revenue
QCOM•Qualcomm unveiled a full suite of AI data center components—including accelerators, CPUs, high-bandwidth memory and turnkey rack servers—and raised its fiscal 2029 non-handset revenue target to $40 billion from $22 billion. The company now forecasts $5 billion in data center sales in fiscal 2027 and $15 billion by fiscal 2029.
1. Data Center Product Launch
At its investor day in New York City, Qualcomm introduced its own AI accelerator, new high-bandwidth memory modules, AI-focused CPUs, networking components and full rack servers to offer a turnkey alternative to existing data center platforms.
2. Elevated Revenue Projections
The company raised its fiscal 2029 non-handset revenue target to $40 billion—up from $22 billion—outlining interim goals of $5 billion in data center sales by fiscal 2027 and $15 billion by fiscal 2029, alongside contributions from automotive and IoT segments.
3. Stock Reaction and Analyst Outlook
Shares jumped over 13% after the revenue updates, while analysts boosted price targets—one lifting its objective to $220 yet retaining an underperform rating due to execution risks, and another aligning its long-term estimates with Qualcomm’s accelerated roadmap.
